Muthoot Fincorp Limited, an Indian non-banking finance company (NBFC), recently announced plans to sell INR 1 billion (USD 18.6 million) in non-convertible debentures (NCBs) to fund its expansion into the small and medium-sized enterprises (SMEs) and microfinance as a means of diversifying away from gold loans. Muthoot Fincorp reportedly plans to double its microfinance portfolio of INR 3 billion (USD 56 million) by the end of the 2013-2014 fiscal year. In keeping with its focus on microfinance and SMEs, Muthoot recently acquired Panchratna Securities, an Indian finance company, and has applied to the Reserve Bank of India, the country’s central bank, to register this new subsidiary as an non-banking finance company-microfinance institution (NBFC-MFI).
Muthoot Fincorp is a member of Indian financial services group Muthoot Pappachan Group (MPG). The company operates 3,300 branches as of 2012 and reported total revenue of INR 15 billion (USD 279 million) and a net profit of INR 3 billion (USD 56 million) for the 2011-2012 fiscal year. It does not accept deposits.
By Nicole Boyd, Research Associate
About Muthoot Fincorp Limited
Muthoot Fincorp Limited is an Indian non-banking finance company (NBFC) and a member of Indian financial services group Muthoot Pappachan Group (MPG). Muthoot Fincorp focuses on serving customers unable to access mainstream commercial banking services. Its products include gold loans, auto loans, investment products and insurance and advisory services. The company operates 3,300 branches as of 2012 and reported total revenue of INR 15 billion (USD 279 million), a microfinance portfolio of INR 3 billion (USD 56 million) and a net profit of INR 3 billion (USD 56 million) for the 2011-2012 fiscal year. It does not accept deposits.
Sources and Additional Resources:
Times of India. “Muthoot Fincorp to launch Rs 100cr NCB issue,” http://timesofindia.indiatimes.com/business/india-business/Muthoot-Fincorp-to-launch-Rs-100cr-NCB-issue/articleshow/19623482.cms
MicroCapital. May 5, 2011, “MICROCAPITAL BRIEF: Investor in Microfinance, Education, Health, Infrastructure, Matrix Partners India Raises $300m,” https://www.microcapital.org/microcapital-brief-investor-in-microfinance-education-health-infrastructure-matrix-partners-india-raises-300m/
MicroCapital. December 13, 2010, “MICROCAPITAL BRIEF: Muthoot Fincorp, ACCION International Join to Increase Microfinance Lending in India,” https://www.microcapital.org/microcapital-brief-muthoot-fincorp-accion-international-join-to-increase-microfinance-lending-in-india/
MicroCapital Universe Profile: Muthoot Finance Limited https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Muthoot+Finance+Limited
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Light Microfinance, IppoPay Partner to Offer Digital Lending to MSMEs in Rural India
- MICROFINANCE EVENT: Global Inclusive Finance Summit; December 12-13, 2023; New Delhi, India
- MICROCAPITAL BRIEF: SBFC Raises $18m from Amansa for On-lending to Small Businesses, Households in India
- MICROCAPITAL BRIEF: Abler Nordic Sells Equity Stake in Satin Creditcare, Provider of Microfinance to Low-income Women in India
- MICROCAPITAL BRIEF: Annapurna Finance Borrowing $25m from responsAbility to Boost Renewable Energy, Energy-efficiency in India